TL;DR
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One way to invest in BTC, without investing in BTC, is to buy publicly listed BTC mining stocks – but that comes with pros and cons.
Full Story
We love writing about ways to invest in BTC, without investing in BTC.
For example:
We’ve written about BTC ETFs plenty of times in the past (e.g. the last article).
We’ve written about MSTR (aka ‘BTC proxy companies’) which essentially let you invest in BTC because they hold so much BTC in their treasury that their stock price is pretty much pegged to it at this point.
But what we’ve never written about is investing in publicly traded BTC mining operations.
There are 14 different publicly listed BTC mining companies in the US right now.
Of those 14 companies, in a report released yesterday by JPMorgan, the aggregate market cap increased 29% (by $6.4 Billion USD) from June 30th to July 15th.
Meanwhile, in that same period of time, BTC itself rose by just 6%.
So far, the story sounds pretty good – but be warned!
The problem with investing in publicly traded BTC mining stocks is that, unlike BTC, they have way more variables.
For example, if the city simply raises the price of electricity, it cuts directly into a company’s profit margin.
Also, regulatory changes and technological obsolescence are ever present.
So while in the short term BTC mining stocks may outperform the value of BTC itself, there are many factors to consider when deciding which is the best way to get a return on your BTC investment.
Or maybe the trick is a diversified portfolio 🙃
